Fourth Up Month For Factories

January 05, 1994

Strong demand for new cars and aircraft drove factory orders higher for a fourth straight month in November, the Commerce Department said Wednesday.

The 1.4 percent gain in November orders to a seasonally adjusted $262 billion followed a 1.2 percent increase in October orders. It was the biggest monthly rise in business since a 2.9 percent surge in June.

Shipments of finished goods also posted a fourth straight increase, up 1.6 percent in a measure of the steady pickup in factory activity since an unbroken chain of increases started in August.

Manufacturing plants reported that business continued to pick up in December. The National Association of Purchasing Management said Monday that business kept rising as prices fell and job prospects brightened.

The factory orders report showed orders for transportation equipment climbed 5.3 percent in November after a 5.7 percent increase in October.

Shipments of motor vehicles and parts rose 3.8 percent after a 3.2 percent October gain.

Excluding transportation, factory orders rose 0.9 percent in November after gaining in October by 0.5 percent.

Defense contractors' orders, which have been trending steadily down, fell by 3.5 percent after a 17.7 percent drop in October and a 2.3 decline in September.